2015 Housing Market

Posted by Professional Realty on Friday, January 9th, 2015 at 8:28am.    1518 Views

2015 Housing Market - Is it a Good time to Buy a Home?

#2015-housing-market#

I can see it already, the number of visitors to our site increasing, inquires and questions coming in, property searches being saved and the Ohio real estate market is already coming out of hibernation. I've already been asked a half dozen times by future buyers if it's a good time to buy.

First time buyers have a lot of questions.

Chief Economist of the National Association of Realtors thinks so, and so do I. Particularly if you look down the road. Homes sales to jump 5% and new home sales are expected to increase 30-40%, and house values to climb 5-7%.

While sales are predicted as hot for new home sales, it can be construed as "pent up demand", as Mr. Yun put it, and the increase in house values and sales prices, though modest, are welcome. But what does all that mean for the 2015 first time buyer? Particularly the millennial demographic?

It means, get up and bust a move, make it happen. In some ways, the real estate, or housing market is similar to Wall Street and has to balance itself out or undergo major corrections. We all saw the dismal crash of 2010, so when I see articles like this from respected authorities, I'm cautiously optimistic. It's seems to be a time of "Get it while it's good".

  • House values expected to rise 5%
  • Home sales expected to rise 5 %
  • New home sales expected to rise 30-40%.

First Time Buyers - More Competition

Mortgage rates could hit 5% by the end of this year, still very low, but if your household finances are sensitive it could really hurt. A lot of buyers I believe already aware of this are getting serious about a home purchase.

Now add FHA cutting premium mortgage insurance virtually in half brings the monthly cost of owning a home down, giving further encouragement to first time buyers.

Rise in house values may put buying a home out of reach for some first time buyers if they wait too long. Coupled with a rise in rates by the end of 2015, add another 5% to purchase price and on a $200,000 home a buyer is financing another $10,000.

That may not sound like much but depending on a buyer's price range that could add another $50 -$150 to a monthly payment even after PMI is reduced.

Lower gas prices, better economy, less unemployment and more consumer confidence means there will be more buyers with down payments handy.

What are these buyers looking for, especially for new homes or more recent builds? 2015 Home Trends.
 
Millennials are seeking smaller, greener and more affordable homes, not McMansions. These popular homes, though smaller, are constructed with a higher degree of quality with regard to energy efficiency but also homes that are more eco-friendly.
 

Personal proof you're gong to have more competition? My business partner Marty Snyder has been out showing homes all this week in the snow (he's great at helping first time buyers) and tells me every single client he's actively helping currently is in their mid-twenties. So, if you've been sitting on the fence, now's a good time to hop off and bust a move.

If you're looking for a home in SW Ohio from Dayton to Cincinnati, give Marty a shout or visit our website below.

2 Responses to "2015 Housing Market"

charlene wrote: to buy or not to buy, that has been my question. I'm working on my credit and trying to pay down some revolving debt. How much money do I need out of pocket to buy a home around lebanon or xenia? is there any type of assistance for me, i'm not a first time buyer, bought a house several years ago, but time to move on and find more room.

Posted on Saturday, January 10th, 2015 at 9:22am.

Greg Hancock wrote: Hello Charlene,

Sorry for the slow reply, was setting up a new computer and ran into some issues. To answer that question I'd need to know more about your price range and particulars of your unique situation. A typical amount for closing costs will run around $3,000, but I would say have $4,000 handy to cover other expenses, like inspections, re-key fees if it's a HUD home, etc... as far as down payment, FHA is 3.5% down, and some Lebanon Ohio homes for sale qualify for USDA financing (no money down) but you still run into closings costs and a few extras. I sent you an email, if you'll kindly respond that I can dig up what programs are available that suit your situation. Have an awesome week!

Posted on Monday, January 12th, 2015 at 9:18am.

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